BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), posted nearly $10 billion in daily trading volume on Feb. 5, setting a new record for the fund. The surge in activity came as Bitcoin suffered a sharp sell-off, falling from about $73,100 at the open to a low near $62,400, a drop of as much as 15% during the session.
Bloomberg ETF analyst Eric Balchunas said IBIT had “crushed its daily volume record” that day. The previous high came on Nov. 21, when the fund recorded $8 billion in trading volume. Over the last several sessions, IBIT has also been trading above $5 billion a day.
Heavy trading coincides with a steep drop in IBIT shares
Trading volume rose just as the ETF’s own price came under pressure. Thursday marked IBIT’s second-worst daily price decline since launch, with the fund down 13% on the day. As of Feb. 4, IBIT had posted $373.4 million in outflows after two straight days of inflows that each exceeded $200 million.
The flow pattern has been uneven. According to the report, IBIT has struggled to hold a steady inflow trend as Bitcoin has remained in a prolonged decline since its October all-time high of $126,080. Unlimited Funds chief asset manager Bob Elliot said that by last week’s close, the average investment cost in IBIT was already underwater, leaving many holders sitting on losses.
Bitcoin breaks lower as macro stress weighs on risk assets
Bitcoin is now down more than 49% from its all-time high, and Thursday’s slide ranked among its largest single-day drops in the period covered. The report said risk appetite had weakened as investors reacted to soft jobs data, tighter macroeconomic and geopolitical conditions, and concerns tied to spending in the artificial intelligence sector.
Pressure may not be over. Bitcoin had already broken through several key support zones and was trading just above $64,800 at press time. Bloomberg analysts also said current global market stress resembles periods such as the 2008 financial crisis and the 2000–2001 dot-com downturn, adding that Bitcoin could fall as low as $10,000 under that scenario.